Guildford Dry Cleaning Service dry cleaning - uk only - business plan financial plan. Guildford Dry Cleaning Services will provide dry cleaning, laundry, and garment alterations, offered with regular home pick-up and delivery. (NOTE: This plan was created in the United Kingdom version

Guildford Dry Cleaning Service

Dry Cleaning - UK Only - Business Plan

Financial Plan

The following topics describe the cash flow statement, profit and loss account, and balance sheet have been built using forecasted information which is as accurate and realistic as possible. These financial statements show that the business runs quite well and achieves expected results.

Return on capital employed: Pendlebury (2002) indicates this ratio is useful to measure the efficiency which the long term capital has been employed. The business’ return on capital employed (ROCE) increases over the 12 months showing the effect of using capital to grow business, especially in the last months of the year.

General Assumptions

Year 1

Year 2

Year 3

Plan Month

1

2

3

Current Interest Rate

10.00%

10.00%

10.00%

Long-term Interest Rate

6.48%

6.48%

6.48%

Tax Rate

30.00%

30.00%

30.00%

Other

0

0

0

Need real financials?

We recommend using LivePlan as the easiest way to create automatic financials for your own business plan.

7.3 Projected Profit and Loss

In general, the business might meet some difficulties in the beginning months but after that the business grows as expected and produces a small profit at the end of the year. It is not necessary for the business to gain high profit in the first year, breaking even is acceptable.

Here under are the estimated fixed costs and variable costs for the year 2006. These costs have been divided into two periods:

Jan – Mar

Apr – Dec: One more van (£7,000) will be purchased and new staff recruited; therefore interest, maintenance, petrol, salary and national insurance are increased

Fixed costs Per Month

Jan - Mar

Apr - Dec

Interest rate

1,264

1,604

Machine leasing

834

834

Building renting

600

600

Maintenance

50

100

Petrol

150

300

Salary per month

7,584

9,408

National Insurance

421

620

Total

10,903

13,466

Variable costs Per Month

Jan - Mar

Apr - Dec

Tea/Coffee break

100

100

Office cleaning

100

100

Recruitment cost

45

400

Advertisement

150

200

Telephone

300

500

Electricity

500

500

Miscellaneous

300

300

Total

1,495

2,100

Need actual charts?

We recommend using LivePlan as the easiest way to create graphs for your own business plan.

7.4 Projected Cash Flow

Cash flow increases gradually over the year creating the positive net present value. To exist and develop in the competitive market are getting more and more difficult. Obtaining loyal customers and recruiting new customers in term of long run business are extremely difficult therefore the service aims to achieve low profit create and enhance the service’s image which are the advantage competition in the market.

Need actual charts?

We recommend using LivePlan as the easiest way to create graphs for your own business plan.

Try the #1 business planning software risk-free for 60 days

Try the #1 business planning software risk-free for 60 days.Try the #1 business planning software risk-free for 60 days.Start Your PlanNo contract, no risk. Built for entrepreneurs like you.

Guildford Dry Cleaning Service dry cleaning - uk only - business plan financial plan. Guildford Dry Cleaning Services will provide dry cleaning, laundry, and garment alterations, offered with regular home pick-up and delivery. (NOTE: This plan was created in the United Kingdom version